- Wildcat Resources (ASX:WC8) recently hit one-year returns of 2721 per cent
- In January of 2023, the shares were worth 3 cents
- Now they’re worth 79 cents
- High-grade lithium discovered in October and again in November have rapidly progressed the company towards a $1bn market cap
- The market isn’t liking the move, with shares falling from 85.5c to 80c in the first half hour of trade today
- Shares last traded at 79 cents
Wildcat Resources (ASX:WC8) has announced it is tapping investors for $100 million to progress thedevelopment of its lithium projects.
The market appears to be disliking the move, with shares falling from 85.5 cents to 80 cents in the first half hour of trade today.
$100m placement
Wildcat has received commitments for $100 million as part of a placement to raise funds for more lithium drilling and project development studies.
The company’s NSW gold assets will also receive some of the dosh.
The company is to issue 131.5 million placement shares to sophisticated and institutional investors – “Euroz and Canaccord clients,” as one HotCopper user put it.
Management comment
“The demand for this placement was significant,” Wildcat Executive Director Matthew Banks said.
Mr Banks noted that international and domestic institutions contributed, as well as existing shareholders.
An original $80 million was sought but the company ended up with $100 million locked in oversubscribed – to be sure, a show of confidence, no matter how you look at it.
“The placement provides a strong balance sheet that allows the company to accelerate discovery drilling and progress development studies at Tabba Tabba … we have an exciting 12 months ahead of us,” Mr Banks added.
Rapid ascension
To anyone who’s been living under a rock, you may know Wildcat as a penny dreadful.
At the start of 2023, its shares were worth 3 cents and it didn’t particularly look like the stock was doing anything standout.
To be sure, microcap traders had their eyes on Wildcat, but it failed to make the kind of waves Invictus Energy (ASX:IVZ) or Dreadnought (ASX:DRE) or Imugene (ASX:IMU) do today.
Then the company acquired the Tabba Tabba project and hit high-grade litihium.
Astonishing returns
The company did this again in November, finding a mammoth drill intersection at 180 metres thickness and grading at 1.10 per cent lithium.
In turn, Wildcat shares have climbed to 88.5 cents in the last eleven months.
For those playing at home, that’s a return of 3191 per cent year to date.
WC8 shares last traded at 79 cents.